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Technological Innovation in Chile: Where we are and what can be Done

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  • José Miguel Benavente H.

Abstract

The aim of this paper is to characterize and assess the current Chilean scientific and technological status from an economic perspective. The analysis reveals that, given the country’s present level of economic development, major weaknesses exist in the National System of Innovation. In particular, Chile devotes very scarce resources to R&D as a proportion of GDP, the participation of professionals and scientific workforce in research activities is poor, and private involvement in conducting or financing these activities is negligible. This latter aspect is of special interest, considering that the international evidence shows that in countries that have attained significant development advances, the private sector is actively involved in scientific and technological activities. The paper discusses some economic mechanisms that promote such involvement.

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Bibliographic Info

Article provided by Central Bank of Chile in its journal Economía Chilena.

Volume (Year): 8 (2005)
Issue (Month): 1 (April)
Pages: 53-77

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Handle: RePEc:chb:bcchec:v:8:y:2005:i:1:p:53-77

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  1. Petri Rouvinen, 2002. "R&D-Productivity Dynamics: Causality, Lags, and "Dry Holes"," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 123-156, May.
  2. Tor Jakob Klette & Jarle Møen & Zvi Griliches, 1999. "Do Subsidies to Commercial R&D Reduce Market Failures? Microeconomic Evaluation Studies," NBER Working Papers 6947, National Bureau of Economic Research, Inc.
  3. M. Ishaq Nadiri, 1980. "Sectoral Productivity Slowdown," NBER Working Papers 0423, National Bureau of Economic Research, Inc.
  4. Stephen Martin & John T. Scott, 1999. "The Nature of Innovation Market Failure and the Design of Public Support for Private Innovation," CIE Discussion Papers 1999-02, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
  5. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-51, March.
  6. Zvi Griliches, 1984. "R & D, Patents, and Productivity," NBER Books, National Bureau of Economic Research, Inc, number gril84-1.
  7. Branstetter, Lee & Sakakibara, Mariko, 1998. "Japanese Research Consortia: A Microeconometric Analysis of Industrial Policy," Journal of Industrial Economics, Wiley Blackwell, vol. 46(2), pages 207-33, June.
  8. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output Per Worker Than Others?," The Quarterly Journal of Economics, MIT Press, vol. 114(1), pages 83-116, February.
  9. José Miguel Benavente, 2006. "Antecedentes para el Diseño de una Política Tecnológica Nacional," Working Papers wp229, University of Chile, Department of Economics.
  10. Zvi Griliches, 1984. "Introduction to "R & D, Patents, and Productivity"," NBER Chapters, in: R & D, Patents, and Productivity, pages 1-20 National Bureau of Economic Research, Inc.
  11. Scott J. Wallsten, 2000. "The Effects of Government-Industry R&D Programs on Private R&D: The Case of the Small Business Innovation Research Program," RAND Journal of Economics, The RAND Corporation, vol. 31(1), pages 82-100, Spring.
  12. Irwin, Douglas A. & Klenow, Peter J., 1996. "High-tech R&D subsidies Estimating the effects of Sematech," Journal of International Economics, Elsevier, vol. 40(3-4), pages 323-344, May.
  13. Peter Klenow & Andrés Rodríguez-Clare, 1997. "The Neoclassical Revival in Growth Economics: Has It Gone Too Far?," NBER Chapters, in: NBER Macroeconomics Annual 1997, Volume 12, pages 73-114 National Bureau of Economic Research, Inc.
  14. Jose Miguel Benavente & Gustavo Crespi, 2003. "The Impact of an Associative Strategy (the PROFO Program) on Small and Medium Enterprises in Chile," SPRU Working Paper Series 88, SPRU - Science and Technology Policy Research, University of Sussex.
  15. Hall, Bronwyn & Van Reenen, John, 2000. "How effective are fiscal incentives for R&D? A review of the evidence," Research Policy, Elsevier, vol. 29(4-5), pages 449-469, April.
  16. Richard R. Nelson, 1959. "The Simple Economics of Basic Scientific Research," Journal of Political Economy, University of Chicago Press, vol. 67, pages 297.
  17. Hall, Bronwyn H. & Mairesse, Jacques, 1995. "Exploring the relationship between R&D and productivity in French manufacturing firms," Journal of Econometrics, Elsevier, vol. 65(1), pages 263-293, January.
  18. Goto, Akira & Suzuki, Kazuyuki, 1989. "R&D Capital, Rate of Return on R&D Investment and Spillover of R&D in Japanese Manufacturing Industries," The Review of Economics and Statistics, MIT Press, vol. 71(4), pages 555-64, November.
  19. Nadiri, M Ishaq, 1980. "Sectoral Productivity Slowdown," American Economic Review, American Economic Association, vol. 70(2), pages 349-52, May.
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Cited by:
  1. World Bank, 2007. "Chile : Investment Climate Assessment, Volume 2. Background Chapters," World Bank Other Operational Studies 7716, The World Bank.

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